The 50% Rule?

[Ross Ellington]

Hey guys, I was wondering if anyone out there would help me with the 50% rule. I guess my question for you is in your experience has property expenses really been that high? Is that a common number that you've seen throughout your investing careers? Thanks in advance for any info/experience you can share. Thank you.

[Dawn Anastasi]

Your expenses may not necessarily be that high any one particular year, but you have to think of it averaged over time.  You replace a roof one year and wham! that's a huge expense that will throw off the average.  But then you won't have to replace that roof again for 25-30 years.  Another time, maybe a furnace.  Other years, not so much.

So that's how it goes.